Israel selects two funds for state-backed defense-tech investment

The Finance Ministry’s Accountant General Division and the Defense Ministry’s MAFAT (the Directorate of Defense Research and Development) have selected Adir Capital, managed by Eidan Financial Instruments, and SLING Capital, managed by Giza, as the winners of a tender to establish venture capital funds focused on advanced defense technologies and backed by state guarantees. The funds will invest in defense-tech companies, with the aim of strengthening Israel’s technological, industrial and security independence, establishing critical supply chains, and encouraging investment in startups and companies developing advanced defense technologies. The initiative is also intended to address a shortage of venture capital for defense sectors that require substantial investment and carry high levels of risk, according to the Finance and Defense Ministries. The need has become more pronounced amid the security and technological demands that have emerged from the war and broader geopolitical changes.